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HomeMy WebLinkAbout01-23-96 CITY OF LAKEVILLE ECONOMIC DEVELOPMENT COMMISSION MEETING MINUTES JANUARY 23, 1996 The meeting was called to order at 6:06 P.M. in the Administration Conference Room at City Hall. Roll call of members was taken. Present: Brandy, Detjen, Emond, Erickson, Krejci, Matasosky, Pogatchnik, Vogel. Absent: Tushie. Also present: Ron Langness, Springsted, Inc.; Walt Hartman, MEDN, Inc.; Robert Erickson, City Administrator; Michael Sobota, Director of Community & Economic Development; Dennis Feller, Director of Finance; Carol Hymel, Economic Development Speciahst; Joni Hubred, Lakeville Life and Times Newspaper. The Commission directed staff to make the following changes to the December 12, 1495 meeting minutes: Add Vogel as being present and correct spelling of Krejci on signature page. 96.01 Motion was made by Erickson, seconded by Pogatchnik to approve the minutes of the December 12, 1995 meeting with amendments. Roll call was taken on the motion. Ayes: Unanimous. Election of Officers Discussion by the Commission on election of oflicers took place. Members indicated they would like to keep the present olTicers in-place for 1996, since it was the 2nd year of implementing the EDC Strategic Work Plan. 96.02 Motion was made by Erickson, seconded by Pogatchnik to elect Bob Brandy as Chair, Jerry Erickson as Vice-Chair and Joan Krejci as Secretary. Roll call was taken on the motion. Ayes: Unanimous. Presentation of Financial Incentive Pro¢rams for Development Proiects Sobota introduced Dennis Feller, Director of Finance for the City of Lakeville, and Walt Hartman, MEDN, Inc., City fiscal consultant. Feller introduced Ron Langness, Springsted, Inc., financial consultants to the City for the past 32 years. City Administrator Erickson added that Springsted is also the fiscal consultant for the Cities of Farmington and Burnsville. Langness began the presentation with an overview of the following items: Taxes Summary of Tax Levies, Payment Provisions and Minnesota Real Property Valuation • Certificate as to Taxes and Taxable Property in City of Lakeville Tax Capacity and Calculating the Tax Capacity Rate CITY OF LAKEVILLE ECONOMIC DEVELOPMENT COMMISSION MEETING NIlNUTES JANUARY 23, 1996 Page 2 Fiscal Disparities Impact on Tax Increment Districts Hartman continued the presentation with a discussion on the following: Taz Increment Tax Increment Financing Legislation in Minnesota Concepts and Mechanics of TIF Review of Tax Increment Project Areas and TIF Districts in Lakeville Following Hartman's presentation, Langness discussed Tax Increment Financing (TIF) in neighboring cities. Lakeville is perceived by neighboring communities as being very aggressive in attracting businesses to the community. TIF is a major incentive program in Minnesota, especially through the pay-as you-go method. Langness stated that Lakeville is very prudent in its implementation of TIF. City Administrator Erickson added that the City uses the pay-as-you-go method under current law. Langness recommended to the EDC that improving the time frame for the development process would be one way that Lakeville could differentiate itself from other cities. He noted that Lakeville's current development process time frame is good (45 to 60 days.) Matasosky asked if a formula exists to estimate return on investment to the City on development projects involving TIF. Feller explained that the tax increment financing plan contains a cost analysis by taxing jurisdiction and a "but for" test. Matasosky asked if TIF was a viable tool and under what circumstances does the City promote T1F. Sobota added that before TIF is considered, the financial health of the business is evaluated. Brandy stated that the City was correct in scrutinizing financial information on businesses using the cost/benefit approach. City Administrator Erickson recommended that at the next scheduled EDC meeting, the Commission review the City's current TIF policy and criteria of implementation. Resort on ISD 194 Studv Committee on Secondarv School Facilities Sobota gave an overview of the presentation by the ISD 194 Task Force at a recent City Council worksession. He reviewed future projects, including sites for a third junior high and the need for second senior high school. Brandy and Tushie represented the EDC at the worksession. Brandy commented that the noticeable free flow of information between the School District and City was appreciated. At the worksession, Tushie suggested the proper placement and future use of secondary education facilities. He subsequently suggested that the School Board consider locating the 2nd high school across from the existing Senior High on Dodd Blvd. City Administrator Erickson added that ISD 194 is allowing the City to be proactive in siting fixture school facilities. Meetings are planned to discuss future educational facility needs. CITY OF LAKEVILLE ECONOMIC DEVELOPMENT COMMISSION MEETING MINUTES JANUARY 23, 1996 Page 3 Discussion by the Commission on the impact of school bond/levy referendums on business took place. City Administrator Erickson added that excess levy referendums do not impact businesses in the same manner as bond referendums. Detjen stated that the process of taxation in the state was another way of moving money around and that all taxpayers pay in the end. Other Business City Administrator Erickson shared with the Commission the 1996 Minnesota Real Estate Journal Survey of private developers that ranks Lakeville as the number one City in Dakota County in encouraging development. Within the metro area, Lakeville ranks 4th, up from 5th place in 1995, in encouraging development. Project Activities Undate Sobota updated the Commission on several prospects for Fairfield Business Campus. Other project activities reviewed included the recent Downtown Business Association/Chamber of Commerce luncheon where a presentation by downtown consultant, Bert Stitt, was given. J. Erickson stated that the luncheon was well attended and the presentation by the consultant informative. J. Erickson suggested that the Downtown Business Association and Chamber of Commerce look at other consultants before moving ahead with the project. Meeting was adjourned at 9:10 P.M. Respectfully submitted: Carol Hymel, ecording Secretary ATTEST To: an Krejci, Secre ary •